Musk’s xAI is being sued over its data center generators. Now, it’s buying $2.8B more.

TechCrunch
2026.05.20 21:57
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Elon Musk’s xAI is facing a lawsuit over its use of polluting generators at a Tennessee data center while planning to purchase $2.8 billion more turbines. The NAACP has filed for an injunction against xAI for operating unregulated gas turbines that worsen air quality. xAI claims it can operate these 'mobile' turbines without permits, exploiting regulatory discrepancies. However, the EPA has ruled that xAI is violating federal air-pollution laws, which could adversely affect its AI business.